Businessman at Heart of Rowland Probe

HARTFORD, Conn. - By all accounts, Robert Matthews prided himself on his list of celebrity friends, hobnobbing with Bill Clinton and U.S. senators, and donating to both Democrats and Republicans. Now the millionaire Connecticut businessman finds himself at the heart of a federal corruption investigation that led to the resignation of another prominent friend, Gov. John G. Rowland.

The governor's impending departure Thursday comes amid questions about secret real estate deals involving Matthews that made Rowland tens of thousands of dollars.

Rowland announced his resignation before a committee of lawmakers could decide whether his actions were an impeachable offense, but federal authorities continue to investigate his relationship with Matthews.

Testimony during legislative hearings to consider Rowland's impeachment portrayed Matthews as a savvy dealmaker who tried to shroud his agreements in secrecy: allegedly ordering a business partner to cook the company books, moving money through intermediaries and admonishing callers for using cell phones for sensitive conversations.

Matthews, who asserted his Fifth Amendment right against self-incrimination before the committee, has known Rowland for decades, going back to the governor's days as an insurance agent. Matthews ran a variety of businesses, including manufacturing companies and real estate holdings that leased space to state agencies.

Associates testified that Matthews is a notorious name-dropper who displays photos in his office of famous elected officials, including the Kennedys. At a fund-raiser on Nantucket, he impressed friends by taking them on a boat with several U.S. senators.

Lawyers in the Rowland case have said FBI investigators have Matthews in their sights. His former business partner, antiques dealer Wayne Pratt, has pleaded guilty to being the front man for Matthews' deal to buy Rowland's Washington condominium for twice its value.

Before the sale, Matthews rented the condo for his niece at $1,750 per month, triple the market rate.

Lawmakers on the impeachment committee have called the condo deal one of the most damaging pieces of evidence to surface in the inquiry.

"Pratt didn't make the connection between doing this guy a favor and that favor ending up having an impact on Matthews' business with the state," said Tom Dwyer, Pratt's attorney.

Instead, Pratt viewed it as doing a favor for a friend, Dwyer has said.

Around the time of the 1997 condo sale, Rowland attended a dinner with Matthews and his bankers, who were nervous about loaning money to his manufacturing company.

"The governor indicated not to worry about the state's part of it, and they should do their part," Michael Santogatta, a businessman who attended the dinner, told the impeachment committee.

As chairman of the state Bond Commission, Rowland oversaw the approval of millions of dollars in loan guarantees. For years, Matthews continued to drop the governor's name during business deals.